Tiger cub economies: What are they and why are they important?
Learn more about what tiger cub economies are, and how to work them into your retail strategy.
Expanding into tiger cub economies
If you’ve been following the news around fast-growing countries and economies set to boom in the coming years, then you’ve likely heard the term ‘tiger cub economy’ being thrown around. And if you work in e-commerce, you’ve also probably been told that they’re countries to keep an eye on.
But unless you’re very well versed in global market affairs or working in the Asian market in general, you may not even know what these economies are. And that’s exactly why we’ve put together this guide, so you can consider incorporating them into your wider business strategy.
From what a tiger cub economy is to how to work them into your wider marketing and sales strategy, we’ve covered everything you need to know to get started in these markets.
What is a tiger cub economy?
First things first, let’s start by defining what a tiger cub economy is, and why it only applies to certain fast-growing countries.
In simple terms, a tiger cub economy exclusively refers to five countries in Southeast Asia:
- Indonesia
- Malaysia
- The Philippines
- Thailand
- Vietnam
The phrase comes from the term ‘Asian tiger economies’, which was used to define the growth of Hong Kong, Taiwan, Singapore, and South Korea in the late 20th century.
Identified by their high growth, rapid industrialisation, and rising middle-class consumer base, tiger cubs are seen as thriving modern economies that are only now stepping into the online shopping world.
Why are tiger cub economies important?
While their economies might still be in the early stages of development, tiger cubs are vital points of interest on the economic world stage for two reasons:
- They provide the perfect base for early investment at low costs
- They’re home to families with an increasing level of disposable income.
And it’s this last point that makes them really important for e-commerce businesses in particular.
Stats show that all five of the countries we’ve mentioned not only have a growing population, but these younger generations also have a keen interest in getting online and importing the latest gadgets, media, crafts, and fashion from abroad.
In other words, tiger cub economies are an untapped and steadily growing market that your e-commerce business should absolutely be taking advantage of – the sooner the better!
1. Do your market research
To begin with, you want to take the time to do as much market research on your chosen countries as possible. While these economies might be growing rapidly, if there’s no target market for your products, then your success will be limited.
On top of this, you’ll also want to look at the local prices, and those of any potential competitors, so you can set competitive rates. Naturally, you want to make a profit, but you also don’t want to price yourself out of the market.
2. Understand the local nuances of each country
You won’t be able to get by on a one-size-fits-all plan when it comes to these sorts of economies. So, as part of your market research, you’ll want to look into the local nuances that are unique to each country.
Take your time studying the marketing trends of each country and reach out to local businesses who might be able to shed some light on the best ways to approach any potential customer base. That way, you can be sure that your marketing will land on its feet.
3. Optimise your site correctly
While you won’t need to create an entirely new website to take advantage of these economies, if you think it’s worth doing, then it might be a good idea to create and optimise an Asia-centric page to capture local traffic. This will give you a higher chance of appearing in searches relating to your products, especially if you’re a smaller brand.
Alongside this, it’s also a smart idea to make sure your entire website is mobile-friendly, as mastering the mobile phone market of tiger cubs is crucial to getting the most out of any potential new customers.
4. Carryout local language campaigns
If there’s one thing that’s proven to be consistently popular with customers living in tiger cub economies, it’s brands that promote social media campaigns and advertisements using the local language.
But this doesn’t mean you need to invest in multilingual staff for this (though neither should rely on using Google Translate). Instead, employ the skills of a local freelancer or translation service who can speak to your new audience in their own words. That way, you can capitalise on this vital and relatable marketing element.
5. Set up a proper mobile app
Although tiger cub economies might be set to grow rapidly in the coming years, their relative youth means that some aspects of their public infrastructure aren’t as developed as larger nations – specifically when it comes to easy access to the internet.
This means that most people in these countries do the majority of their shopping via their smartphones. Which has in turn created a unique opportunity that e-commerce businesses can use to their advantage by creating a simple yet functional mobile app.
This app doesn’t have to be overly complex or state-of-the-art by any means. So long as it lets customers order and pay for products in a seamless manner, you’ll be good to go. Just make sure to have different language options available for added accessibility.
6. Don’t overreach
Last, but not least, you need to be sure that you’re expanding into these economies at a rate which your business can handle. If you do it right, you’ll likely see a rapid uptick in sales. But this won’t be so great for your business’s reputation if you can’t meet demand.
So, if you’re a small business, it’s best to expand into these countries slowly. This will allow you to scale to meet demand as and when required, and as a bonus, make it even easier for you to nail down all of the previous five points we’ve discussed for each country, one at a time.
How can you export to the tiger cub economies?
Hopefully, you should now have a much better idea of what Asian tiger economies are, and how to use them in your business strategy. However, getting your products sold in these spaces is just the first step – you also have to get them there.
And that’s exactly where Evri can help!
Our international Couriers deliver to over 200+ countries and territories worldwide, offering a quick and cost-effective solution for sending parcels overseas – no matter where in the UK your business is based.
Whether you want to send to any of these countries directly, or to nearby neighbours like China, India, or Japan, our Couriers have you covered.
Set up your account today to get started, and don’t forget to visit our guide hub for more articles like this one, such as advice on how to use our international Courier service.